SAN ANTONIO — With car prices at an all-time high and inflation worries looming, local families are finding new ways to save money and adjust their budget by refinancing auto loans.
RefiJet is an auto loan refinancing company that has doubled in size as Americans grow increasingly interested in refinancing their existing car loans rather than face the rising auto costs.
The rising vehicle costs and inflation concerns are forcing Americans to continue their monthly budgets, starting with their largest non-housing debt, their auto loans.
- According to Kelley Blue Book, the average price of a new vehicle has reached an all-time high in 2021, rising by more than $2,000 compared to last year.
- So much attention has been paid to refinancing homes during the current real estate boom, but the average monthly car payment in the U.S. is $563 for new vehicles and nearly $400 for used vehicles. Adjusting a car loan could have just as large an impact on a monthly budget as a mortgage payment.
Refinancing auto loans to reduce a monthly payment or lower an interest rate can make budgets much more manageable even as vehicles get more expensive. Companies like RefiJet are making it easier to:
- Lower your monthly payment: Refinancing can do wonders for your monthly budget if focused on reducing the amount you owe each month. RefiJet’s customers see an average savings of $150 per month through refinancing.
- Reduce your interest rate: for those who can shorten the term of their loan, interest rates can be cut to save a large chunk of money you would otherwise pay the longer the loan exists.
- Buy out a lease: some drivers who lease their vehicles may be better off buying out their car, which could save money on end-of-term expenses and avoid the risk and cost of purchasing a different new or used car while prices are so high.
Borrowers are in a much better position now than during the last financial crisis, as the average credit score was 25 points higher in 2020 than in 2009.
That improvement, along with low interest rates, make now the perfect time to refinance an auto loan.